Commercial Vehicle Leveraging The Peak Of The Cycle

Commercial Vehicle Group (CVGI) at long last has its ducks in a row, and the company is enjoying the fruits of a very healthy heavy truck cycle and a pretty strong cycle for construction and agricultural equipment as well. With labor and restructuring issues in its past, management is achieving strong incremental margins and making the most of a very strong production and order cycle for heavy trucks, medium-duty trucks, and heavy equipment.

These good times won’t last, they never do, but this unfollowed seating and components company could still have a few surprises left. There could still be some upside before the truck cycle ultimately turns, but late-cycle plays can be tricky and I’d also note that the lack of coverage tends to lead to more volatile performance here.

Click here to continue:
Commercial Vehicle Leveraging The Peak Of The Cycle